Posts Tagged Providers
Posted by Darshana V. Nadkarni, Ph.D. in Big Data -Cloud -IoT-Software -Mobile -Entrepreneurship, Biotech - Medical Device - Life Science - Healthcare on April 30, 2015
Are you still playing inside the boundaries of disciplines? Play on the boundaries, instead. There are huge opportunities for entrepreneurship and innovation on the boundaries of disciplines. All industries are impacted and transformed by the increasing interconnectedness with technological advances in IoT, Big Data, Cloud Computing, Machine Learning and more. This transformation is most apparent in heavily regulated and somewhat slower to change industries like, “Oil and Gas” and “Healthcare”. Any industry that worked in a silo before is likely to leap forward into the new age. These areas are likely to experience most disruptive innovation and are brimming with opportunities for entrepreneurs thinking outside the discipline boundaries.
Oil & Gas industry is on the verge of major transformation. Entrepreneurs with industry specific innovations to enhance operational efficiency and minimize negative environmental impact, will score big. Most recent environmental concerns have been around the impact of fracking or hydraulic fracturing, a process by which water and sand mixture is pumped deep below the earth’s surface, into earth’s dense shale rock formations. Fracking produces many long narrow fractures in the rock formation and helps convert organic matter embedded within the rock to synthetic oil and gas. It has vastly improved oil production. It is estimated that what can be produced by a vertical well in 30 to 35 years, can be done in a horizontal well, in as short a span as 6 months. However, recent studies indicate that fracking has led to an increase in seismic activity. Thus far the activity was minimal but it has now been growing in both strength and number, with increase in fracking. Many Oil and Gas companies have established innovation centers in Silicon Valley to assess and garner technological help to expedite learning about environmental impact and explore if technology might help intervene to minimize negative impact, in addition to enhancing operational efficiency.
Healhcare has also emerged as the most attractive area, pulling in major investment dollars. Internet of things, for instance, will help bring in focus, the prospect of connected health. As increasingly incentives are tied to preventative medicine, providers will look for opportunities for seamless, integrated care. Cloud and big data will enhance the possibility to learn from collective knowledge, access wisdom of the crowd, and enhance quality of health with lesser investment of resources. Big pharmaceutical companies and biotech will look to utilizing technology in bringing therapies to market, with minimal wastage of resources and dollars. Opportunities exist to transform the process of drug development http://bit.ly/1xzpdFx& http://bit.ly/14pkhRO , to digital health advances enabling early identification and treatment of diseases http://bit.ly/11MlM9e , to even better monitoring of medical adherence. While reimbursement is increasingly emerging as a major challenge, insurance providers will look for disruptive, and long term, cost saving innovations.
TiEcon 2015, largest entrepreneurship conference, taking place at Santa Clara Convention Center on May 15 and 16, will feature these new tracks on healthcare http://bit.ly/1OOCV9Z and oil and gas http://bit.ly/1HqQkoc, in addition to featuring companies and speakers making waves in Data Economy, Internet of Things, and Cloud Security tracks.
Register for TiEcon and come and play on the boundaries of disciplines; jump from track to track, network with multi-track participants, angels, VCs, and learn and get inspired. TiEcon will take place at Santa Clara Convention Center, Santa Clara, CA on May 15 and 16. Register through this link https://www.123signup.com/register?id=ygszb&ref=4182698 to get a $100 discount on the two-day conference at the non-member rate. When prompted, enter the promo code VOL500 at checkout.
PS – I am looking to fill a number of full time and contract engineering opportunities in mechanical, quality, software, electrical, firmware engineering in CA & TX. Details are posted in JOBS category at www.darshanavnadkarni.wordpress.com . Some of my full time opportunities are very exciting with a huge potential upside and truly disruptive technology. Resumes can be sent to wd_darshana at hotmail dot com
Posted by Darshana V. Nadkarni, Ph.D. in Biotech - Medical Device - Life Science - Healthcare on December 22, 2014
Tim Pelura, CEO, Surpass Preclinical CRO talked on how medical device companies can align their strategy, from preclinical to market, with a focus on the value proposition, at www.bio2devicegroup.org event.
We are operating under a new reality now where power has shifted to the payers and the providers, said Pelura. Medical device companies are evaluated based on safety and procedural efficacy as well as cost and value. Increasingly heightened regulatory scrutiny and tightening FDA regulations have led to increase in audits (which were up 40% in the last year) and warning letters are (which were up 24% over the last 2 years). Due to regulatory and reimbursement challenges, medical device companies are focusing their R&D efforts on improving already approved devices, rather than developing innovative new products. Meanwhile startups are finding the landscape challenging due to funding challenges and increasing costs of bringing new products to market.
Inkeeping with the reality of pressures on payers that are transmitted down, new healthcare delivery models are emerging, and therefore, patient pathways are being modified to obtain to obtain better outcomes, with less cost. Medical device companies will need to work with new business models, that solve significant problems and reduce overall costs. Companies seeking growth will need to expand their offerings to target underserved populations and lower socioeconomic classes.
In essence, it is about the value proposition offered by the new product or service, “what benefit you provide for who and how you do it uniquely well”, said Pelura. He advised, these “must-haves” in a business pitch, “describe your target buyer, the problem you are seeking to solve, and why you do it better than the alternative”.
Pelura walked the audience through the process of arriving at the value proposition. First, companies must define the problem they are seeking to solve and identify correctly the need to solve the problem. Next, they should try to go after obvious problems, rather than aspirational or “good to solve” problems. And finally, they should try to address acute or critical problems.
In defining a solution, they should try to generate many ideas and then measure the viability of customer adoption of each idea using gain/pain ratio; what the customer stands to gain versus the cost of adoption of the new solution. The best solutions are those that offer game-changing benefits, with minimal modifications to the existing process or environments, said Pelura. Go for “Disruptive Innovations, that are Non-Disruptive to Adopt”, advised Pelura. Medical device companies must visualize the entire process or patient pathway to ensure that the new solution would cause minimal disruptions, in the whole process.
While new technologies often emerge with a focus on engineering and progress to bench testing and then plan preclinical, and clinical strategies and only then consider navigating regulatory, market, and reimbursement challenges; in actuality, they should invert the process. They should begin with considering reimbursement challenges, analyze the competitive landscape, study the market opportunity, give thoughtful consideration to the regulatory challenges, then consider clinical and preclinical strategy, before embarking on prototype and bench testing. Because if the value proposition is wrong then a company can end up with a product that no one wants or needs, resulting in considerable waste of precious innovation dollars and time, said Pelura.
Speaking of Surpass, Pelura shared that preclinical Contract Research Organization, Surpass is doing things differently. While having deep expertise as a preclinical CRO in helping medical device companies with their preclinical in vivo and human cadaveric studies, Surpass also seeks to impact the system, by probing and assisting their clients with questions that go to the value proposition. Surpass assists the clients in designing the most translatable preclinical study by understanding issues of clinical end points, product’s desired features and characteristics, all the while keeping in mind who would be operating the device, studies and activities that might need to be completed to demonstrate the products, performance, safety, and efficacy, as well as data that would be required to drive reimbursement and more. This novel process ensures that any preclinical testing performed is aligned to the new product’s value proposition, hence helping save valuable healthcare innovation dollars.
The session was followed by Q&A.
Posted by Darshana V. Nadkarni, Ph.D. in Biotech - Medical Device - Life Science - Healthcare on August 19, 2013
Mark Zubiller, VP of Decision Management at McKesson, talked about value based medicine by driving better diagnostic decisions through collaborative model, aligning labs, clinicians, and payers, at www.bio2devicegroup.org event.
Molecular diagnostic tests identify molecular and genetic markers for an individual patients that help determine potential benefit from a specific, targeted therapy. Molecular diagnostic tests have become a big buzz word but the area is fraught with challenges. There isn’t a lot of clinical evidence that support many of these tests which are often based on extreme of a diagnostic marker, so there needs to be more data churning to demonstrate clinical utility of the data. Second, there is limited point of service information. Only 20% of molecular diagnostic tests on the market have evidence based guidelines today, although 75% of the providers believe that patients in their practice would benefit from having a genetic test. As new tests continue to emerge, physicians cannot keep up with information about newer tests and their efficacy. Third, many of the tests are unidentifiable. There is no catalogue for identifying the tests, coding information is nonspecific, and payers do not have consistent way to code and pay for these. Payers require clinical utility for coverage. This often leads to denials and reapplications and generates a lot of frustration for everyone involved. Finally, this results in increased paperwork and payer scrutiny.
Currently, market does not have a way to address this challenge and it is stuck between innovation and execution. There is a great deal of system fatigue, on account of increasing administrative burden, reform compliance etc. but while innovation is greatly needed, it would bring reimbursement shifts, additional administrative challenges, and a need for collaboration among the stakeholders. Payers, labs, and providers essentially share the same challenge of ensuring that patients get the right care at the right cost, without increased administrative burden. Existing traditional payer programs operate in silos and do not have a way of engaging providers. They require expensive manual resources and are struggling with administration, transparency, and consistency. Lack of collaboration exerts a huge financial burden on both the providers and the payers. Providers spend $31 billion annually and payers spend $74 billion annually that could be saved, with greater collaboration.
Explaining the McKesson value based care model, Zubiller said, it means “balancing value-based reimbursement with value-based care delivery at the point of care. As the patient care progresses from care selection to care plan to network selection to reimbursement, point of care decisions happen at each stage that impact cost, care, and value. Earlier and better decisions would greatly reduce cost, improve care, and provide better value, said Zubiller. A value based diagnostics strategy has to be based upon collaboration between labs, payers, and providers for identification of tests, for determination of cataloging and coverage, for consistent evidence based payer and lab policies, for decision support rules integrated into EMR, and for sophisticated performance data analytics for payment.
The talk was followed by Q&A. Explaining the strategy, Zubiller said, McKesson is a business that works with health care stakeholders in every setting and is therefore taking the lead to chart the course towards a stronger more sustainable future, for the entire industry. McKesson is a leading provider of enterprise information technology solutions, including software, services, automation, and consulting to hospitals, physician offices, imaging centers, home health care agencies, and payers. With strategic use of IT solutions to bring greater connectivity in the healthcare ecosystem and by leveraging its credibility to bring the stakeholders to the table for collaborative dialog, McKesson hopes to lead implementation of value based care model that would be a win-win solution for payers, providers, labs and for patients.